Tax Stability Will Attract Investment to France

February 18, 2014 Taxation in France

Francois HollandePARIS – France wants to address its negative image as a hard place to do business, and will work towards making the country a more attractive destination for foreign investment.

France will implement an extensive array of legislative and tax changes to provide a more stable and attractive tax and business environment to foreign corporations investing in the country, according to new information revealed by the President of France Francois Hollande at Elysee Palace in a speech delivered on February 17th.

The President said that the government and national tax authority will offer guarantees on the taxation and administration requirements to large corporations considering investing in France or launching a new major project in the country.

The guarantees are aimed directly at dispelling the perception that France is a difficult country in which to conduct business, and at fostering the image that “…France is not afraid to open itself up to the world.”

Francois Hollande also said that the government would work towards introducing a plethora of other pro-business measures, including cutting down the amount of red tape and administrative difficulties often faced by businesses, introducing fast track visas for entrepreneurs, and simplification of the rules of applying VAT to imports and exports.

France is currently facing some difficulty in attracting foreign investment, as in 2013 alone the amount of foreign direct investment into the country dropped by approximately 75 percent.

Photo by: Jean-Marc Ayrault